WITH Chars (MaxLen)
AS (SELECT MAX(len(name))
    FROM sys.DATABASES),
FixBadChars
AS (SELECT CAST(name AS nvarchar(1000)) AS FixedString, 1 AS MyChar
    FROM sys.DATABASES
    UNION ALL
    SELECT CASE WHEN Unicode(SUBSTRING(FixedString, MyChar + 1, 1)) > 255 THEN
    CAST(Stuff(FixedString, MyChar + 1, 1, N'') AS nvarchar(1000))
        ELSE FixedString
        END AS FixedString, MyChar + 1
    FROM FixBadChars
    CROSS Apply Chars
    WHERE MyChar <= MaxLen)
SELECT FixedString
FROM FixBadChars
CROSS Apply Chars
    WHERE MyChar = MaxLen
OPTION (MAXRECURSION 8000)